Alan Greenspan. Photo: Steven Ferdman/Getty Images

Former Fed Chair Alan Greenspan endorsed the central bank's expected rate cut at this month's FOMC meeting during an interview with Bloomberg TV on Wednesday.

Why it matters: Current Fed Chair Jerome Powell has shown admiration for Greenspan and getting his stamp of approval likely means a rate cut for July is a lock. Powell also could feel emboldened to adopt an even more dovish stance, acquiescing to the market's expectation of 75 basis points of cuts within the next year.

What he said: Greenspan said the idea of a rate cut in the face of possible risks to the economy — in this case the U.S.-China trade war — could be a good idea.

  • "Forecasting is very tricky. Certain forecast outcomes have far more negative effects than others. It pays to act to see if you could fend it off."

Background: Powell paid fawning tribute to Greenspan during his speech at the Fed's Jackson Hole gathering last year, lauding the longtime Fed chief's insight, patience and strategy.

  • Despite criticism laid on Greenspan for his loose views on regulation and policy that many argue were a major cause of the global financial crisis, Powell clearly reveres him, and so do other members of the Fed.

Between the lines: Vice chair Richard Clarida and Chicago Fed president Charles Evans, both FOMC voters, highlighted the Fed's decision to cut U.S. interest rates in September 1998 as prescient, even though unemployment had fallen to 4.5% and there were worries about inflation.

Flashback: At the time, the Fed was worried about the potential of the Russian financial crisis and the collapse of Long-Term Capital Management negatively impacting the U.S., much the way Powell and Co. have focused on negative developments from the trade war and weakness in Europe and Asia as potentially justifying a cut this year.

  • “It is just not credible that the United States can remain an oasis of prosperity unaffected by a world that is experiencing greatly increased stress,” Greenspan said of his reason for cutting rates multiple times in 1998 despite the strong economy.

Yes, but: The Fed ended up backtracking on the cuts and raised rates in 1999 and 2000 ahead of the 2001 recession.

Go deeper: The case for a Fed rate cut

Go deeper

Trump's Tucker mind-meld

Photo illustration: Sarah Grillo/Axios. Photo: Roy Rochlin/Getty Images and BRENDAN SMIALOWSKI/AFP via Getty Images

If you want to understand the rhetorical roots of Trump's Independence Day speech at Mount Rushmore, go back and watch Tucker Carlson's monologues for the past six weeks.

Between the lines: Trump — or rather his speechwriter Stephen Miller — framed the president's opposition to the Black Lives Matter protest movement using the same imagery Carlson has been laying out night after night on Fox.

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Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 6 p.m. ET: 11,366,145 — Total deaths: 532,644 — Total recoveries — 6,154,138Map.
  2. U.S.: Total confirmed cases as of 6 p.m. ET: 2,874,396 — Total deaths: 129,870 — Total recoveries: 906,763 — Total tested: 35,512,916Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity — Houston mayor warns about hospitals
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Former Trump official Tom Bossert says face masks “are not enough”
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: Sports return stalked by coronavirus
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.

Bolton's hidden aftershocks

Photo illustration: Sarah Grillo/Axios. Photo: Justin Sullivan/Getty Images

The news media has largely moved on, but foreign government officials remain fixated on John Bolton's memoir, "The Room Where It Happened."

Why it matters: Bolton's detailed inside-the-Oval revelations have raised the blood pressure of allies who were already stressed about President Trump's unreliability.